The Fallout From Higher State Taxes Bob Martinez: Why I Pushed For A Sales Tax On Services

June 14, 1987|By Bob Martinez , Special to The Sentinel

When I took office as Florida's 40th governor five months ago, I faced a disturbing array of problems.

I was determined not to sit around criticizing previous leaders who had created the problems, but instead to begin solving them. I think the events of the past five months, particularly the just-completed legislative session, have started us in the right direction.

The problems were plentiful. Our prisons were bursting at the seams and in jeopardy of being taken over by a federal court; our schools were burdened with increasing enrollments and declining resources; too many Floridians were going without adequate medical care because they are poor; roads all over our state were choked with traffic and in an appalling state of disrepair.

One source of the problem, I believe, was the tendency in recent years for state government to slip away from its proper, fundamental mission and deplete its dollars to embark on a host of ambitious but costly new programs.

That is why in my inaugural address I pledged to focus on what I called ''the Four P's,'' the areas government should properly emphasize: public education, public safety, public health and public works.

As the former owner of a business, I found it inconceivable that state government -- in effect a $17 billion business -- maintained a reserve account that provided virtually no cushion against a major financial crisis.

Thus, the budget I recommended in February supported the Four P's. It made sure the state provided essential services while also maintaining a responsible financial reserve for emergencies.

The more I learned about being governor, the more I realized that everything I must do revolves around one number: 895. That is the average number of people who become new Floridians each day.

Those people do not bring new roads with them, but they do want to drive easily from one place to another.

They do not bring more classrooms or teachers with them, but they do insist that their children

receive a quality education.

They do not bring new prison cells with them, but they do demand adequate protection from the predators of society.

Florida's growth will continue whether we prepare for it or not. With that in mind, the Legislature last year adopted the State Comprehensive Plan to serve as a blueprint for Florida's future. The plan details numerous laudable objectives. It also charts a wise course for our state's future in areas from crime prevention to protecting our beaches.

But it does not provide any money to pay for it all. Without funding, the plan will become another government document that says much but does little.

I doubt that is what Floridians want; and it is not the way to hold onto the Florida we all love.

That is why I came to the difficult decision that Florida must have additional money to pay for the roads, schools, prisons and other facilities that are in short supply now and are certain to become even more scarce in the future.

During my campaign for governor, I pledged to save $800 million through better management and increased efficiency in state government. And I will.

But the $800 million saving simply is not enough to meet Florida's needs for quality public services over the next 10 years. This fact forced me to face the question of what it means to be conservative, Re-

publican and in a position of responsibility in Florida today.

I do not believe being a conservative and being Republican means not caring about the real problems of the people of Florida or being unconcerned about Florida's future.

To me it means being a careful trustee of adequate public resources that are efficiently applied to solving problems that concern government.

Essentially, the choices for paying for Florida's needs and ensuring our quality of life came down to two options.

We could either raise the existing 5 percent sales tax, which would provide a great deal of new money for a relatively short time.

Or we could modernize Florida's entire sales tax structure by expanding the existing tax to cover many services that had previously enjoyed exemptions. This option would broaden the state's revenue base for years and spread the tax burden to businesses that benefit from the growth that made the change necessary.

This also would apply the sales tax to the fastest-growing sector of the state's economy. And it would provide a stable tax base that would not be prone to wild fluctuations during times of recession.

Thus the choice was an easy one, although accomplishing it was not.

Every special interest imaginable came forth to say, ''Raise the money to provide the services I want. Just make sure someone else pays for it.''

Legislators held firm and expanded the sales tax to services, granting exemptions only for medical and social services, agricultural services and a few others

necessary to protect the public.

It wasn't easy for them and it wasn't popular.

But it was right.

The expanded sales tax will raise $777 million in new dollars next year and more than $1.2 billion the year after.